The market valuation of the international FIBC bulk bags market is expected to be US$ 7.1 billion by the end of the year and a CAGR of 5.3% will remain during 2022-2023 which is a projection period. Also, the FIBC market will hold a 1/3rd value percentage of the entire global FIBC market worth US$ 22 Billion in 2022.
The growth of the food and medicine industries as well as the growing prerequisite to lessen the total weight of bulk packaging is one of the key aspects driving the need for FIBC bags. Enterprises are expected to utilize FIBCs to ferry grains, rice, and fluid chemicals utilized in biological derivatives.
FMI foresees this sector is expected to notice a compound yearly expansion rate of 5.8% from 2032.
What is the Historical and Future Prospect for FIBC Market?
Through the historic duration of 2015 to 2021, FIBCs were assembled to be reusable and were planned for distinct goods. Nowadays, several kinds of specialized FIBC are achieving traction across various industries, increasing the market.
The rising tendency of end users towards FIBC in place of conventional packaging and carriers is one of the aspects propelling the need. The demand for high durability had a nominal effect on the adoption rate of FIBC, hence manufacturers are expanding new product lines to cater to the growing demand from end users.
As per FMI, the industrial sector is anticipated to undergo steady expansion due to the integration of machine understanding and the adoption of robotics, which, in turn, will speed up the development of the FIBC market.
How will Demand Food Grade FIBC Bulk Bags Affect Sales?
FIBCs are mainly used up in the chemical enterprise, nevertheless, the need for these bulk bags is remarkably expanding in food companies. The food grade FIBCs are coming to be a perfect option for commercial food enterprises.
Characteristics such as their load-carrying capability, versatility, reusability, cost-effectiveness, and eco-friendly fabric are expanding the demand. FIBCS has dust-proof hems and laminated fabric sides that assure optimum safety of the inside products from vapor.
Bulk bags with a mixture of polyethylene, foil, and another kind of linings are achieving immense popularity to keep food products safe from severe climates, spillage, and deterioration. The main features of these bags as Easy modification and quality printing of FIBCs are benefiting end users with trademark establishment and product publicity.
What is the Impact of COVID-19 on the International FIBC Market?
The international FIBC market is anticipated to observe remarkable developments over the next 10 Years. However, due to the COVID-19 pandemic, the market noticed a slow growth of 1.3% from 2020 to 2021.
FIBC manufacturers have faced multiple work barriers during the pandemic period such as importing and shipping raw fabrics and finished products and fulfilling the requirement for bulk bags. Generally, the lead time on distributors’ orders differed between 60 to 80 days.
Due to the unprecedented seizure of COVID-19 and the resulting international shutdown, factories, distributors, and end users confronted an adverse effect on this lead time. This resulted in prospect uncertainties in product deliveries.
Many Shipping giants decreased their availability of vessels enormously. This resulted in double the duration of transporting items through the sea. Post-pandemic, manufacturers designed strategically to heal from the losses and supply imaginative FIBCs that will cater to the necessity of end users.
How is the USA Preparing the Market for FIBC?
Development of the Shipping and Logistic Industry to
Fuel the Sales of FIBC
As per FMI, the USA market is anticipated to expand by 1.6x during the projection period (2022 to 2032). As per the International Trade Administration (ITA) and Select USA, the logistics and carrier enterprise in the USA is in the limelight and favorably competitive.
The USA Business Logistics Cost traversed over US$ 1.6 Trillion in 2018 and is further anticipated to achieve traction in the next decade. Foreign Direct Investment in the US logistics industry was documented as US$ 1.5 Billion in 2018 and surpassed over US$ 5.3 Billion in 2020.
As per the world investment statement printed by United Nations Conference on Trade and Development (UNCTAD), the USA is amongst the top-ranked nations for FDI inpouring recording US$ 156 Billion in 2020.
The shipping and logistics enterprise carries a substantial stake in this Foreign Direct Investment and with the growth of the shipping and logistics industry, the need for FIBC is calculated to boost exponentially in the next decade.
Why Does India Suppose to Have the Highest Growth Opportunities for the FIBC Market?
Optimistic Make-in-India Initiatives to Surge the Requirement for FIBC in Food and Agriculture Industries. The food-grade FIBC is achieving immense traction, registering well-known development rates.
As per the organization, the FIBC exposition in India is registered as 306,996 MT in 2021. The food-grade FIBC exposition was almost 28% of the whole production of FIBC in India. The growth of varied industries and improving trade movements are pushing the demand for FIBC.
Various types of industries, including food products & agriculture, pharmaceuticals products, and chemicals & fertilizers, have encountered substantial mechanization. This is due to improved global commerce and several optimistic standards by the Indian government.
Make-in-India initiatives and industry-specific motivations are increasing the establishment of numerous manufacturing enterprises in India. Hence, the need for FIBC for adequate warehouses and transportation of goods is streaming with the peak of such end-user industries. According to the FMI study, India is anticipated to evolve at a pace of 2x during the projection period.
Why are Sales of FIBC with a Capability of Above 750 kgs Rising?
Need for FIBCs with a Capability of Above 750 Kgs to Boost in the FIBC Market. Growth is attributed to high stability corresponding to other FIBCs.
Such high-capacity FIBCs are usually raised through mechanical tools such as forklifts, and pallet jacks resulting in small manual work and rarer chances of store floor accidents. Also, high-capacity bulk bags are cost-effective and use smaller storage areas after loading up.
With the accumulation in retail and e-commerce platforms, the consumption of small-sized FIBCs having a sack capability of 250 kg is also expected to create a buzz in the market.
Which are the Leading End Use Enterprises in the FIBC Market?
Sales of FIBCs to Improve at 5.8% CAGR in the Chemical & Fertilizers Sector
Based on the end-user, the chemicals & fertilizers industries are predicted to carry the lion’s percentage in the international FIBCs market. The sales of FIBCs in the chemical and fertilizers industry are predicted to speed up with a CAGR of 5.8% in the international market.
Which Packaging Type Will be the Most Preferred in the International FIBC Market?
Q-Bags Packaging Type to Stay Positively Sought- After for FIBCs
As Q-bags proposes the collective advantage of optimizing the loading velocity and transportable volume along with protecting the derivative from any leaks, the need for Q-bags packaging will improve. The baffles prevent the flanks of the bag from plunging over during transport or storage.
This gives the FIBC a straight shape. These variables are largely accountable for increasing the traction of Q bags among end users. Therefore, the analysis team assesses that the need for Q bags will increase at an exponential pace during the inspection period.
Useful Articles Link